In August 2019, total liquid assets (M4) increased by HRK 7.6bn (2.3%) and at the end of the month stood at HRK 337.3bn (Table 1). The monthly increase in the broadest monetary aggregate was driven by the strong growth of net foreign assets (NFA), while the fall in net domestic assets (NDA) contributed negatively to the change in M4. The growth in the system’s NFA was almost equally the result of an increase in net foreign assets of the CNB and that of credit institutions, while the fall in NDA was mostly due to an increase in central government deposits with the banks. On an annual level, the growth of total liquid assets (M4) slowed down slightly in August 2019 and stood at 4.7%, based on transactions (Figure 1). The annual growth in money (M1) slowed down slightly to 16.0%, mostly due to a slowdown in demand deposits’ growth, while the annual fall in the second component of total liquid assets, quasi-money, accelerated and stood at –1.5% at the end of August (based on transactions).

Figure 1 Monetary aggregates annual rates of change based on transactions	Figure 2 Placements annual rates of change based on transactions
Source: CNB.

Total placements of monetary institutions to domestic sectors (excluding the government) rose by HRK 0.6bn in August (based on transactions), totalling HRK 226.8bn at the end of the month. On an annual level, the growth in total placements accelerated and stood at 3.7% in August (Figure 2), influenced by a slowdown in the fall of placements to non-financial corporations, which stood at –1.9% on an annual level. The negative annual rate of change in corporate placements was due to the activation of government guarantees for loans to shipyards and the reduction of claims on the Agrokor Group, also associated with the operational implementation of the settlement. As regards households, the annual growth of placements to that sector slowed down slightly in August to 7.0% (Table 2) as a result of a small slowdown in the annual growth of general-purpose cash loans to 12.2%, while the growth in housing loans held steady at the previous month level (4.6%). As for the nominal stock of placements, their annual growth stood at 2.1% in August and was significantly slower than the transaction-based growth, primarily as a result of the sale of non-performing placements.

Table 1 Summary consolidated balance sheet of monetary institutions
in billion HRK and %

¹The sum total of asset items 2.2 to 2.8 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.
²The sum total of liability items 2 to 5 of Bulletin Table B1: Consolidated balance sheet of monetary financial institutions.

Source: CNB.

Table 2 Placements (except the central government) and main components
in billion HRK and %

¹In addition to placements to households and corporates, they also include placements to the local government and other financial institutions.
²The transactions show changes that exclude the effects of exchange rate changes, securities price adjustments, reclassification and write-off of placements, including the sale of placements in the amount of their value adjustment.

Source: CNB.

For detailed information on monetary statistics as at August 2019, see:

Central bank (CNB)
Other monetary financial institutions